Land banking its a term which can be shrouded with negativity and is often in the spotlight for all the wrong reasons. But what does it actually mean, and can it work as an investment strategy?
What is land banking?
Land banking is a speculative investment strategy, which centres around the acquisition of land deemed to hold a significantly higher future value, pending a change to development zoning.
In Australia, the term is often applied in the context of land banking schemes, which are managed by a central authority. With these setups, investors put money down in return for a designated plot in the scheme, or shares associated with a plot in the land, purchased by the company.
The theory is that once these development changes have…
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